Expected cash outflow
$220*10% = $22
$610*30% = $183
$830*50% = $415
$710*10% = $71
Total = $691
PV factor of 9% and 2 years
PV factor = 0.84168
So the value is $691*0.84168
= $581.6
Morgan Bowie is trying to determine the amount to set aside so that he will have...
Adams Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 5 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 5 years, by conducting some research online, Adams has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment $270 10% 590 30% 840 50% 980 10% Click here to view factor tables How much...
John Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 4 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 4 years, by conducting some research online, John has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment $270 10% 630 30% 750 50% 870 10% Click here to view factor tables How much...
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Compute the amount that a $42,000 investment today would accumulate at 11% (compound interest) by the end of 6 years. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Click here to view factor tables Future Values Daniel wants to retire at the end of this year (2020). His life expectancy is 20 years from his retirement. Daniel has come to you, his CPA, to learn how much he should deposit...
Your answer is incorrect. Try again. Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his 65th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 40th through his 64th birthdays, what annual deposit must Robert make if the fund will earn 8% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0...
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Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...